[Federal Register Volume 70, Number 49 (Tuesday, March 15, 2005)]
[Notices]
[Pages 12719-12721]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-4994]


-----------------------------------------------------------------------

DEPARTMENT OF THE INTERIOR

Minerals Management Service


Outer Continental Shelf (OCS) Civil Penalties

AGENCY: Minerals Management Service (MMS).

ACTION: Notice summarizing OCS civil penalties paid, January 1, 2004, 
through December 31, 2004.

-----------------------------------------------------------------------

SUMMARY: This notice provides a listing of civil penalties paid January 
1, 2004, through December 31, 2004, for violations of the OCS Lands Act 
(OCSLA). The goal of the MMS OCS Civil Penalties Program is to assure 
safe and clean operations on the OCS. Through the pursuit, assessment, 
and collection of civil penalties and referrals for the consideration 
of criminal penalties, the program is designed to encourage compliance 
with OCS statutes and regulations. The purpose of publishing the 
penalties summary is to provide information to the public on violations 
of special concern in OCS operations and to provide an additional 
incentive for safe and environmentally sound operations.

FOR FURTHER INFORMATION CONTACT: Joanne McCammon (Acting Program 
Coordinator), 703-787-1292.

SUPPLEMENTARY INFORMATION: The Oil Pollution Act of 1990 (OPA 90) 
strengthened section 24 of the OCSLA Amendments of 1978. Subtitle B of 
OPA 90, titled ``Penalties,'' increased the amount of the civil penalty 
from a maximum of $10,000 to a maximum of $20,000 per violation for 
each day of noncompliance. More importantly, in cases where a failure 
to comply with applicable regulations constitutes or constituted a 
threat of serious, irreparable, or immediate harm or damage to life 
(including fish and other aquatic life); property; any mineral deposit; 
or the marine, coastal, or human environment; OPA 90 provided the 
Secretary of the Interior (Secretary) with the authority to assess a 
civil penalty without regard to the requirement of expiration of a 
period of time allowed for corrective action.
    On August 8, 1997, MMS published new regulations (62 FR 42668) 
implementing the civil penalty provisions of the OCSLA. Written in 
``plain English,'' the new question-and-answer format provides a better 
understanding of the OCS civil penalty process. In addition, the 
provisions of OPA 90 require the Secretary to adjust the maximum civil 
penalty to reflect any increases in the Consumer Price Index. The new 
rule increased the maximum civil penalty to $25,000 per violation, per 
day. Please note, subsequent to publishing the new regulations, MMS 
made several corrections and amendments, including the appeals 
procedures. These were published at 63 FR 42711, 8/11/98; 64 FR 9066, 
2/24/99; 62 FR 9065, 2/24/99, and 64 FR 26257, 5/13/99.
    On November 28, 2003, MMS published a new regulation (68 FR 61622) 
adjusting the maximum civil penalty assessment to comply with the 
Department of Labor's Consumer Price Index. The maximum amount is now 
$30,000 per violation per day.
    Between August 18, 1990, and January 2005, MMS initiated 504 civil 
penalty reviews. Operators have paid 397 civil penalties for a total of 
$13,234,792 in fines. Seventy cases were dismissed; 5 cases were 
merged; and 32 cases are under review.
    On September 1, 1997, the Associate Director of Offshore Minerals 
Management issued a notice informing lessees and operators of Federal 
oil, gas, and sulphur leases on the OCS that MMS will annually publish 
a summary of OCS civil penalties paid. The annual summary will 
highlight the identity of the party, the regulation violated, and the 
amount paid. The following table provides a listing of the penalties 
paid between January 1, 2004, and December 31, 2004.

[[Page 12720]]



        2004 Civil/Criminal Penalties--Summary All Penalties Paid in Calendar 2004 (1/1/2004-12/31/2004)
[The following acronyms are used in this table: SCSSV (surface controlled subsurface safety valve); SSV (surface
 safety valve); PSHL (pressure safety high/low); LSH (level safety high); INC (incident of non-compliance); ESD
                              (emergency shutdown device); H2S (Hydrogen Sulfide)]
----------------------------------------------------------------------------------------------------------------
                                                                     Penalty paid    Regulation(s) violated (30
     Operator name and Case No.           Violation and date(s)      and date paid              CFR)
----------------------------------------------------------------------------------------------------------------
Dominion Exploration & Production,    A fire resulted during a             $28,000
 Inc., G-2002-049.                     welding operation when              2/11/04
                                       operator failed to properly
                                       protect equipment
                                       containing hydrocarbons.
                                       Equipment was located on a
                                       lower deck immediately
                                       beneath welding site.
                                      8/14/02-8/14/02.............  ..............  250.107
                                      8/15/02-8/15/02.............  ..............  250.113
TDC Energy LLC (Island Operators      The operating company was            $25,000
 Co., Inc.), G-2003-005.               conducting operations                5/7/04
                                       without an H2S Contingency
                                       Plan and with a confirmed
                                       presence of H2S in
                                       concentrations and volumes
                                       that could potentially
                                       result in atmospheric
                                       concentrations of 20 ppm or
                                       more of H2S.
                                      10/29/02-10/29/02...........  ..............  250.417(f)
Pogo Producing Company, G-2003-007..  The sump pump ABH-1460 was           $10,000
                                       isolated from the sump tank         3/12/04
                                       by a closed valve,
                                       rendering the pump
                                       inoperable.
                                      1/29/03-1/29/03.............  ..............  250.300(b)
Murphy Exploration & Production       Relay for the departing gas          $10,000
 Company, G-2003-009.                  pipeline (KAH-0056) PSHL            6/29/04
                                       pilots was found pinned out
                                       of service.
                                      3/17/03-3/17/03.............  ..............  250.1004
BP America Production Company         The Rig's Gas Detection              $25,000
 (Diamond Offshore Drilling, Inc.),    System was bypassed with             2/3/04
 G-2003-010.                           ongoing drilling operations
                                       being conducted.
                                      3/1/03-3/18/03..............  ..............  250.410(e)(3)
Chevron U.S.A. Inc., G-2003-011.....  Gas detector protecting the          $20,000
                                       generator building was              1/15/04
                                       found in the bypass
                                       position.
                                      3/7/03-3/10/03..............  ..............  250.803(c)
Devon Louisiana Corporation, G-2003-  The production process group         $30,000
 012.                                  by-pass selector valve was           4/1/04
                                       found in the by-pass mode.
                                      9/13/02-9/13/02.............  ..............  250.803(c)
Helis Oil & Gas Company, LLC, G-2003- Surface-controlled                   $10,000
 014.                                  subsurface safety valve for          2/4/04
                                       Well B-1 was blocked out of
                                       service.
                                      5/29/03-5/30/03.............  ..............  250.803(c)
El Paso Production GOM Inc., G-2003-  The LSH on the 3rd stage             $12,000
 015.                                  suction scrubber was                 1/9/04
                                       bypassed and was not
                                       flagged or monitored.
                                      6/12/03-6/13/03.............  ..............  250.803(c)
GOM Shelf LLC (Production Systems,    Pollution resulted due to an         $35,000
 Inc.), G-2003-017.                    inoperable drain sump                3/4/04
                                       system.
                                      6/19/03-6/24/03.............  ..............  250.300(b)
                                      6/24/03-6/24/03.............  ..............  250.300(a)
BP Exploration & Production Inc., G-  A fire occurred involving           $190,000
 2003-018.                             the as-built diverter                7/6/04
                                       system leading to damage to
                                       property and the
                                       environment. The diverter
                                       system was not installed as
                                       in the approved plan, had
                                       inadequate supports, added
                                       right angle turns at the
                                       ends, and did not provide
                                       for downwind diversion.
                                      8/6/02-8/9/02...............  ..............  250.409(d)(1)
                                      8/6/02-8/9/02...............  ..............  250.415
Chevron U.S.A. Inc. (Production       While cleaning a low                 $50,000
 Management Industries, LLC), G-2004-  pressure separator, the              8/2/04
 001.                                  Confined Space Entry policy
                                       was not completely followed
                                       which resulted in an
                                       explosion and flash fire
                                       that injured four employees.
                                      6/14/02-6/15/02.............  ..............  250.107(a)
Union Oil Company of California       Rusted out hole in grating           $35,000
 (Coastal Production Services,         and missing toe (kick)              7/26/04
 Inc.), G-2004-002.                    plates in two locations.
                                      5/9/03-5/9/03...............  ..............  250.107
Comstock Offshore, LLC, G-2004-004..  Tubing plugs for Well 01 and        $172,000
                                       Well 01D were found leaking          7/9/04
                                       on March 31, 2002. Not
                                       repaired until September
                                       18, 2002.
                                      3/31/02-9/18/02.............  ..............  250.804(a)(1)
Anadarko E&P Company LP (Island       Subsurface safety valve in           $96,750
 Operators Co. Inc.), G-2004-006.      Well C-21 was found leaking         8/20/04
                                       and left in service without
                                       being repaired or replaced
                                       for 129 days.
                                      7/29/02-12/4/02.............  ..............  250.804(a)(1)
Walter Oil & Gas Corporation, G-2004- The Operator failed to               $40,000
 007.                                  implement the H2S                    9/1/04
                                       Contingency Plan while
                                       performing operations on a
                                       well with a confirmed
                                       presence of H2S in
                                       concentrations and volumes
                                       that could potentially
                                       result in atmospheric
                                       concentrations of 20 ppm or
                                       more of H2S.
                                      12/3/03-12/4/03.............  ..............  250.490(f)(1-13)
Murphy Exploration & Production       The SCSSV, which was being           $15,000
 Company--USA, G-2004-008.             used as a tubing plug, was         10/22/04
                                       found in the open position
                                       with the hydraulic control
                                       line pressured up.
                                      3/30/04-3/31/04.............  ..............  250.801(f)
Newfield Exploration Company, G-2004- The LSH on the 2nd stage             $12,000
 009.                                  scrubber was found in the           11/8/04
                                       bypassed mode rendering it
                                       inoperable. It was not
                                       flagged or being monitored.
                                      3/29/04-4/1/04..............  ..............  250.803(c)

[[Page 12721]]

 
Murphy Exploration & Production       The required surface safety          $40,000
 Company--USA, G-2004-010.             valve (SSV-2) for Well CA-7        10/21/04
                                       was found capped in the
                                       open position and
                                       inadvertently left bypassed
                                       for 8 days.
                                      3/25/04-4/1/04..............  ..............  250.803(c)
Apache Corporation (Island Operators  The main safety panel for             $5,000
 Co. Inc.), G-2004-015.                the Water Bath Heater, the         12/22/04
                                       Fired Component, and the
                                       Water Bath Pump was found
                                       in the bypassed position
                                       and it was not flagged or
                                       being monitored by
                                       personnel.
                                      6/21/04-6/21/04.............  ..............  250.803(c)
Aera Energy LLC., P-2004-001........  Aera was issued INC G-110 on         $25,000
                                       7/12/02 after a pipeline             2/4/04
                                       riser leak and oil spill.
                                       Aera appealed to IBLA.
                                       Through the DOI Solicitor,
                                       Aera proposed to settle the
                                       appeal with a payment of
                                       $25,000. MMS accepted
                                       Aera's offer on 1/22/04.
                                       The INC was not withdrawn
                                       and Aera paid $25,000 as a
                                       civil penalty.
                                                                    ..............  250.107(a)
-------------------------------------
                                      Total Penalties Paid: 1/1/04-12/31/04
                                               21 Cases: $885,750
----------------------------------------------------------------------------------------------------------------
The purpose of publishing the penalties summary is to provide information to the public on violations of special
  concern in OCS operations and to provide an additional incentive for safe and environmentally sound
  operations.


    Dated: February 15, 2005.
Thomas A. Readinger,
Associate Director for Offshore Minerals Management.
[FR Doc. 05-4994 Filed 3-14-05; 8:45 am]
BILLING CODE 4310-MR-P